Is it impossible to stock in a bear market?

Isn't it impossible to stock in a bear market? The bear market can also trade stocks, but the profit-making effect of trading individual stocks is not as good as that of the bull market. In a bear market, investors should operate in the short term, rather than invest in the long term, and control their positions reasonably during the trading process. It is best to close the position, set up a stop loss position after buying, and control the risk within a certain range.

For example, if the stock falls by 5%, the investor stops and leaves the market, and the stock rises by 10%, making a profit.

How to judge whether the stock market has entered a bear market from a micro perspective? Before the emergence of previous bear markets, the stock market will have some similar precursors. If these signals appear in the market, investors should be on their guard.

First, prices are mixed, and the index is constantly hitting new highs, but the transaction volume is relatively low. Generally speaking, the rise of stock price needs the cooperation of trading volume. The perfect rising pattern is that the index keeps hitting new highs, the volume of transactions increases and the price increases greatly, indicating that the upward momentum is sufficient; If there is a deviation, the transaction volume will shrink, indicating that the upward momentum is insufficient and unsustainable.

Second, the division is serious, and the index is still rising, but the performance of individual stocks is uneven. In a bull market, most stocks and market indexes fluctuate in a similar way and rise at the same time. However, after the previous crazy rise, the valuation reached a new high and the price deviated from the value. Most stocks will encounter bottlenecks and prices will gradually return to value. Therefore, in the late bull market, although the index is still rising, the market differentiation is serious and the performance of individual stocks is uneven. Most share prices are stagflation, and only a few stocks are still experiencing the final frenzy.

Third, it is unanimously expected that the market is too optimistic, and almost all investors are all in. A popular joke in the market is that a bull market usually starts in despair, rises in doubt and reverses in faith. Ordinary investors are skeptical at the beginning of the bull market, but in the later period, the market will gradually form a consensus expectation, and the market sentiment is too optimistic, which is usually manifested in the sharp increase in the number of accounts opened, the business halls of securities companies are full, and there are many discussions. 20 15 Some experts even suggested that "it is not a dream for the stock index to reach 10,000 points". On the other hand, when everyone is crazy, how can there be incremental funds to drive the market to continue to rise?

What stocks do bear markets buy? Generally speaking, it is easier to lose money when buying stocks in a bear market. If you really want to invest in stocks, you can consider buying some small and medium-sized stocks with good performance, because performance supports the stock price. If the bear market is to rise, the company must show it first. Then, profits may rise and investors will have confidence. Many people buy, and the stock price naturally rises. If it is a stock with good performance, you can consider holding it for a long time.

Then, when selecting stocks, we should also look at the size of the company, and try to choose some excellent companies, such as companies with relatively large scale, good financial status, good governance, no negative news and development plans. Only those with good long-term development prospects will be favored by investors.